Automobile Industry: providing employment to millions

Though turnover and profits are right indicators of performance of an industry, but its size and repute is perhaps measured by the responsibilities it fulfills during the course of meeting its business objectives. Interestingly while the aspects related to turnover can be calculated over a span of year, reputation earned by being responsible takes years to get noticed and rewarded. It is therefore important to keep moving ahead in the right direction and be humble.

In last seven odd decades, automobile industry has powered the growth of the country- both directly and indirectly. While it is directly responsible for mobility, it also takes very seriously its role of being a stakeholder in nation building. Regarded as one of the biggest employer, automobile industry aims to provide meaningful employment to a vast number of young population in the country.

According to a report by National Skill Development Corporation (NSDC), the industry is expected to give employment to nearly 15 million (1.5 crore) people directly by 2022. The figure will be almost double the manpower– 7.6 million – presently employed in the automobile sector. Out of 7.6 million employed in manufacturing, 72% of the employees are working in component sub-sector.

It is to be noted here that these figures does not include the manpower engaged in the overall automotive sector – OEM manufacturers, auto components manufacturers, raw material factories, automobile dealers, service centres etc – both directly and indirectly. If the manpower engaged in all these sub-sectors is taken together, the manpower strength goes upto 19.1 million.

On the overall job front the Indian automobile industry is responsible for employing more than 8 percent of the total workforce. Interestingly, the buck does not stop here. With the responsibility of millions of people, the automobile industry takes upon itself the challenge of upgrading talent of people employed and improves their skill sets from time to time.

Almost all the automobile companies as part of their CSR activities engage in employment generation and skill development activities at all levels. In last few years, it has become part of the annual engagement of these companies where they organise training camps in rural areas. The direct beneficiaries are the people who often do not have many avenues to explore. But due to introduction of automobiles, especially two-wheelers, even in the remotest parts of the country, their employment as mechanics in the overall support system of the automotive industry is ensured.

While we may have never spoken about our role, but the aspect of nation building is in-built in the automobile industry. The industry truly believes that it has to work non-stop and there is no scope for an easy day, the truth that it contributes so much towards making a better India, keeps it energized and spirited.